Chart of the Week: My Favorite World Equity Market ETF

Last week’s selling pressure hit all around the globe as only two countries on our watchlist of over 50 international ETFs were positive. Nigeria ($NGE +0.67%) and Denmark ($EDEN +0.32%) posted gains while New Zealand ($ENZL -0.10%) rounded out the top three, about flat on the week. Here’s the top 10.

I like to look for pockets of strength during selloffs as it is usually the stocks, or in this case the country ETFs, that hold up best during periods of weakness that will outperform if/when the trend resumes.

I wanted to highlight $ENZL in this week’s Chart of the Week as it is showing near-term relative strength and is in one of the strongest structural uptrends of any foreign country ETF. It made new all-time highs last month and following the recent selloff, is one of just two country ETFs on our list still holding firmly above its key highs from 2018 (Saudi Arabia, $KSA is the only other ETF above its 2018 highs).

New Zealand’s prior high ~$51 is now serving as support as price has successfully retested it twice in the past month. Sellers had their chance last week as the average ETF on our list was down roughly 3%. $ENZL gapped lower by 2% Monday to a low of $51.02 before buyers came out to defend this critical level and push prices higher as it reclaimed about all its early losses by week’s end. Risk is very well-defined just below current prices which is advantageous in volatile environments like this, as it allows us to limit losses and know right away if we’re wrong.